The Buzz in Brazil and How it Can Benefit the Cash Buyer

Brazil may not immediately spring to mind as a place to invest in property, but there are several very good reasons why it deserves close attention. It was recently ranked as one of the most desirable places to buy a foreign property by the Worldwide Property Group. This puts it right up there with much more well-known locations such as the Caribbean, Spain and the United States.

A lot of people buy property abroad to rent out to holidaymakers, but an alternative is to rent it out to locals. This is especially relevant when looking at Brazil as its economy is booming making it extremely attractive to foreign investors, which are in turn making the holiday home market more competitive.

The locals in the larger cities are far more likely to be looking for decent one or two bedroom properties as more jobs are being created due to the growth in local industries. Renting property on this more permanent basis ensures the investor receives regular income throughout the year rather than relying on holiday bookings in the high season.

There is also a massive shortfall of property in the Brazilian housing market which is currently being exacerbated by the lack of mortgages, and many interested parties are being turned away due to the lack of finance. This plays right into the hands of the cash buyer as prices are expected to rise by as much as 20% once mortgages become more available. However this option does require good research to find out exactly what the local rental market is looking for.